Capital Gains Relief on Housing

LUNTERO

Find your way home in the Netherlands with 20,000+ rental listings at your fingertips!

Check out our other helpful apps:

What's After the Movie

Browse and discover all the latest movie releases and showtimes.

SAT Sphere

Ace your Digital SAT exam with SAT Sphere!

Plot Explained

Get detailed movie plot summaries, analyses, and explanations.

Driving Theory NL

Master the Dutch driving theory test with ease!

Dutch rentals and housing platform

Dutch rentals Search Dutch rentals Netherlands rental map Compare Dutch rentals Dutch rental guides Contact Renting in NL FAQ Privacy policy Terms of service Luntero Pro Listing Organizer Search Alerts Smart Messages

Netherlands rental guides

Finding a Home guides Platforms guides Rental Templates guides Utilities & Services guides Rental Laws guides Landlord Tips guides Maintenance & Repairs guides Moving & Relocation guides Security & Safety guides Sustainable Rentals guides Rent & Budget guides Market Comparisons guides

Dutch renting handbooks and checklists

The Expat Housing Handbook: Netherlands Edition Dutch Tenant Rights Handbook Student Housing Guide to the Netherlands The Ultimate Dutch Rental Handbook Amsterdam Housing Survival Guide The Rotterdam Rental Playbook

Netherlands rental market data

Dutch rental market reports Netherlands rental metrics Request rental data

Netherlands housing resources

Netherlands rental categories Netherlands air quality Dutch air quality stations Dutch air pollutants City air quality (NL)Dutch rental platforms Search Dutch platforms Compare Dutch platforms Dutch rental glossary Search Dutch terms

Income Requirement

The minimum gross income a prospective tenant must earn to be considered for a rental property, a primary and often rigid screening tool used by landlords.

Application Process

Crown Molding

A decorative trim applied to the junction where the walls meet the ceiling, adding a classic, finished, and often elegant look to a room.

Property Features

Vaulted Ceiling

A high, arched, or angled ceiling that extends up towards the roofline, creating a dramatic sense of space, volume, and openness in a room.

Property Features

Smart Lighting

A modern lighting system that can be controlled remotely via a smartphone app or smart home hub, offering convenience and customizable ambiances.

Property Features

Built-in Speakers

A luxury feature where speakers for a sound system are recessed into the ceilings or walls, offering a clean, integrated audio experience.

Property Features

Co-operative Housing

A housing model where residents collectively own and manage their own properties, a niche sector in the Netherlands that receives some government support for its creation.

Dutch Housing System

Your Ultimate All-in-One Rental Search Tool for the Netherlands

Luntero consolidates rental apartments, rooms, studios, and houses from the leading Dutch real estate platforms (including Funda, Pararius) into a single, constantly updated database. Easily filter by price, number of bedrooms, pet policy, specific neighborhoods, and more to find your dream home in the Netherlands much faster.

The Tax-Free Profit Machine\n\n### A Complete Exemption\nOne of the most significant, yet least discussed, financial benefits for homeowners in the Netherlands is the complete absence of a capital gains tax on the sale of a primary residence. If a person buys a home for €300,000 and sells it five years later for €450,000, the €150,000 profit is entirely theirs to keep, completely tax-free. This rule applies only to the sale of your main home (eigen woning), the one you actually live in and are registered at. This tax exemption provides an enormous incentive for property ownership, as the home is not just a place to live but also a tax-sheltered investment vehicle. For generations of Dutch homeowners, this 'bricks and mortar' investment has been the primary method of wealth accumulation, a benefit entirely unavailable to renters, who build no equity with their monthly payments.\n

The 'Eigenwoningreserve' Condition\nWhile the profit (overwaarde) is tax-free, the government has implemented a rule to encourage this profit to be reinvested in the housing market. This is known as the eigenwoningreserve. If you sell your home at a profit, this profit is recorded by the tax authorities as your 'home equity reserve.' You are then expected to use this reserve to help finance the purchase of your next primary residence. If you buy a new home, the amount of mortgage on which you can claim the mortgage interest deduction is reduced by the amount of your eigenwoningreserve. For example, if you have a €150,000 profit reserve and buy a new house for €600,000, you can only claim the mortgage interest deduction on a mortgage of up to €450,000 (€600,000 - €150,000). This rule effectively forces you to reinvest your tax-free gains into your next home if you want to continue maximizing the other major tax benefit, the mortgage interest deduction. The reserve expires after three years, after which you can use the money for anything without affecting future deductions.\n

The Renter's Disadvantage\nThe combination of tax-free capital gains and the mortgage interest deduction creates a vast financial gulf between owning and renting. A homeowner benefits from two massive, interconnected government subsidies, while a tenant does not. Over a lifetime, this difference in tax treatment can lead to enormous disparities in wealth. A renter pays their monthly housing costs and is left with nothing to show for it, while a homeowner not only builds equity but also benefits from potential tax-free appreciation, all while their monthly costs are being subsidized by the tax system. This structural inequality is a fundamental feature of the Dutch housing market and a key consideration for anyone weighing their long-term housing options.

Further Reading

Income Requirement

Crown Molding

Vaulted Ceiling

Smart Lighting

Built-in Speakers

Co-operative Housing

Newest Properties in the Netherlands

Your Ultimate All-in-One Rental Search Tool for the Netherlands

Quick links